Thread Content
Urea price trends across various regions in China as of February 24. Author/Source: Yuege Agri Supplies Network. Date: 2020-02-24. Clicks: 88. At present, many areas in China are in the phase of preparing fertilizers for agricultural use. Recently, some downstream industries have also begun to recover gradually. Meanwhile, as logistics and transportation have improved, manufacturers’ inventory pressures have decreased, prompting them to maintain higher prices. On the supply side, recent increases in operating capacity at some enterprises have led to a slight rise in overall supply. The urea market continues to recover; manufacturers in Shandong, Anhui, Henan, and Hebei have raised their prices, with increases ranging from 10 to 40 yuan. The transaction prices have also risen by 20 to 30 yuan accordingly, with the prevailing transaction price in Shandong reaching 1650–1670 yuan per ton. The country is currently in the peak season for preparing fertilizers for spring plowing. **Appropriate policies have been introduced to support spring plowing efforts; logistics capacity has improved significantly, and most urea manufacturers have managed to sell off a large portion of their inventory, reducing sales pressure. At present, many areas are in the stage of purchasing fertilizers for agricultural use; the agricultural demand markets in regions such as Shandong, Hebei, and Jiangsu have shown a clear recovery, with dealers becoming more enthusiastic about making purchases. The operation of industrial compound fertilizer plants has also increased, with some starting to purchase raw materials in moderate quantities; however, most plywood factories remain shut down, and demand for industrial-grade products remains limited. There is still room for price increases in certain regions, and the domestic urea market is expected to show positive trends in the short term. It is expected that the domestic urea market will remain stagnant in the short term, with manufacturers adjusting their prices flexibly based on their own circumstances. Next, the focus will be on logistics and transportation as well as the resumption of operations in downstream industries. As order returns to the domestic urea market and downstream compound fertilizer plants resume operations one after another, market sentiment has turned positive, leading to steady price increases. The main contract for urea futures experienced a strong upward trend, with trading volume for the 05 contract reaching new heights, indicating a strong bullish sentiment in the market. This week, as the activities related to preparing fertilizers for spring farming resume, market demand is expected to continue growing. However, since upstream manufacturers still have some inventory on hand, market supply remains relatively sufficient; therefore, it is necessary to closely monitor the recovery of downstream industries. The domestic urea market remains stable with a slight upward trend. Currently, various regions are in the phase of preparing fertilizers for agricultural use, but the distribution of products at the local level is somewhat hindered; issues such as loading and unloading at distribution centers and logistics are not functioning properly, which limits overall market transactions to some extent. In terms of supply, urea manufacturers have increased their production levels recently, but the growth rate of demand remains moderate. Zhuochuang believes that in the short term, supported by agricultural demand, the market trend will remain relatively stable. The urea production capacity of the Shandong Alliance plant has seen a slight increase, with a daily output of around 3,600 tons; some of the production is being redirected to liquid ammonia. The ex-factory price of small particles has risen by 10–20 yuan per ton, reaching 1680–1700 yuan per ton, and new orders are seeing improved performance. Spot sales primarily cover surrounding orders, with improvements in deliveries for agricultural use. Recently, the prevailing transaction price for small-particle urea from nearby companies was 1,670 yuan per ton.